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Amidst a dynamic landscape of technological advancements and shifting market trends, it is essential for state and local government employees to stay informed. You, ultimately, are the drivers that will shape the future of govtech to better serve communities. I'll dive into a few prevalent trends we’re tracking in the private sector and offer recommendations for how state and local government employees can influence and leverage these developments to drive positive outcomes for their constituents. Read more

National News

Social Security Fairness Act Has Bipartisan Support, But Time is Running Out

The House-passed Social Security Fairness Act enjoys rare bipartisan support on Capitol Hill, yet the odds of it getting enacted are growing smaller with each passing day. Lawmakers on both sides of the aisle are calling on Senate Majority Leader Chuck Schumer to schedule a vote on the bill that would expand Social Security benefits to roughly 2.8 million retirees. Schumer, a Democrat and cosponsor of the legislation, could invoke a Senate rule that would skip a committee hearing and send the bill directly to a floor vote by the full Senate. Read more

SECURE 3.0? What’s On the Horizon for Retirement Policy as President Trump Takes Office

The Social Security Fairness Act has passed the House and is now awaiting approval from the Senate, which would impact millions of retirees. Lawmakers are already thinking through new ways to further increase access to retirement savings and coverage with another retirement bill, SECURE 3.0. Also, there’s a high probability, according to many financial industry experts, that President Trump will extend the 2017 Tax Cuts and Jobs Act that is set to expire at the end of 2025, which will boost retirement savings. Read more

IRS Issues 2024 Required Amendment List for Qualified and 403(b) Plans

The IRS published the 2024 required amendments list for qualified plans and 403(b) plans, which includes three pages of amendments. In general, a required amendments list includes changes to statutory and administrative qualification requirements and Section 403(b) requirements with which plans must comply during the calendar year in which the list is published, according to the IRS. However, an RA list does not include guidance issued or legislation enacted after the list has been prepared. Read more

Cryptocurrency Assets Make Up Small Part of 401(k) Market, GAO Finds

Amid growing concerns from the Employee Benefits Security Administration and other industry experts about the risks associated with investing in cryptocurrency assets, the Government Accountability Office recently investigated the prevalence of crypto assets in the 401(k) market. The GAO found that crypto only encompasses a small part of the 401(k) market, as of mid-2023, but the limited amount of data provided by the Department of Labor poses a barrier to fully measuring the scope of its prevalence in 401(k) plans. Read more

Low Financial Literacy Rates Among Young People Indicate Retirement Savings Delays

A lack of financial education in both high school and college tends to correlate not only with low levels of overall financial literacy, but also with a lack of urgency to start saving for retirement, according to a new study conducted by the SPARK [Society of Professional Asset Managers and Recordkeepers] Institute in partnership with Corporate Insight Inc. SPARK’s research examined the aptitude, behavior and confidence of nearly 1,600 recent hires (ages 19 to 35), college students (ages 18 to 23) and high school students (ages 14 to 18). Read more

Canadian News

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Ontario Municipal Employees’ Retirement System Facing First Governance Review in More Than 10 Years

An independent review of the Ontario Municipal Employees’ Retirement System will examine the unique governance structure of the investment organization. The current structure of the investment organization designates two separate entities with different duties and responsibilities, notes Jordan Fremont, a partner in the pensions and benefits group at Stikeman Elliott LLP. The OMERS Sponsors Corporation sets the contribution rates with a view to maintain the sustainability of the plan and consider the needs and interests of stakeholders, while the OMERS Administration Corporation administers the plan’s investments and is responsible for valuation. Read more

State News

Hollywood Firefighter Pension Lawsuit Alleges Insider Trading by United Health Execs, Including Slain CEO

A class action lawsuit brought by the City of Hollywood Firefighters’ Pension Fund alleged that slain UnitedHealthcare CEO Brian Thompson, and two other executives, were involved in insider trading in 2023. The claim, filed May 15, alleged that Thompson, UnitedHealth Group CEO Andrew Witty, and UnitedHealth Group executive chairman Stephen Hemsley sold millions of dollars in stock upon learning in October 2023 that the DOJ had re-opened an antitrust investigation into UnitedHealth’s acquisition of Change Healthcare. Read more

Florida to Invest US$1.85B From Pension Fund to Bitcoin

Analyst Geoff Kendrick explains bitcoin's roadmap as the state of Florida announcement an investment into the cryptocurreny from its pension fund. Read more

Connecticut Retirement Earmarks $1.6 Billion for Slew of Alternative Investments

Connecticut Retirement Plans & Trust Funds, Hartford, disclosed more than $1.6 billion in commitments across its private infrastructure and natural resources, private real estate, private equity and private credit portfolios. Erick Russell, state treasurer and principal fiduciary of the $59.53 billion state pension fund, announced the commitments on Dec. 4 at a meeting of Connecticut's Investment Advisory Council, according to a news release. Read more

NYC Pensions Counter Anti-DEI Rhetoric With $23.1B Invested in Diverse Firms

The five New York City retirement systems have collectively invested or committed $23.08 billion with minority and women-owned business enterprises, as of June 30, accounting for 13.33% of their U.S.-based actively managed assets, according to a recent report from the Office of the New York City Comptroller. Those figures are up from $19.5 billion and 12.7% one year ago and $16.8 billion and 11.6% in 2022. Read more

Rhode Island Employees' Retirement Allocates $75 Million to Private Real Assets, Core Real Estate Funds

Rhode Island Employees' Retirement System, Providence, approved a commitment of up to $50 million to Antares Capital Senior Loan Fund III for its private credit portfolio at the Dec. 4 meeting of State Investment Commission. The approval was confirmed by Justin Maistrow, interim chief investment officer. Read more

Labor and Allies Call for Michigan Legislature to Pass Critical Bills

Michigan Democrats are scrambling in their last month before losing control of the State House to Republicans, 58-52, in January. Bills are on the table now cover public safety, worker protections, and insurance benefits. There are a host of measures that could benefit, or others that could harm working families across the state. Americans face the uncertainty of rising costs and now, since the last election, the uncertainty of a change in federal power. Read more

Ohio Passes Bill Barring State Pension Funds, University Endowments From ESG Investing, Stakeholder Activism

A bill passed in Ohio seeks to limit the state’s five public pension funds, the workers’ compensation bureau and university endowments in the state from perusing investments influenced by social and environmental policy. Ohio Senate Bill 6, passed on Dec. 10th, will also aim to ban funds from engaging in shareholder activism. Read more

Maryland Teachers May Be Losing Thousands from Their Retirement Savings Without Knowing It

Many Maryland teachers are sounding the alarm about companies like Equitable that are still allowed to sell high-priced plans in Maryland schools. Many teachers don’t know they have far less-expensive options and could be keeping more of their earnings. Instead of a 401(k), public school employees are offered a 403(b) to save their retirement money. While federal law requires employers to pick 401(k) providers that are in employees’ best interests, it does apply to 403(b) plans. Read more

New Jersey Launches New Program to Retain and Recruit Teachers

The New Jersey Department of Education has launched a new $1 million initiative, called "Teach.Inspire.New Jersey" to recruit and retain educators in the state. The initiative includes a website where New Jersey's statewide and local "Teachers of the Year" share their stories to inspire their fellow educators and those looking to get into the field. Read more

State Teachers Retirement System of Ohio Enhances Some Pension Benefits

The State Teachers Retirement System of Ohio is sending out checks to retirees this month that gives them a bonus payment, based on their years of service and how long they've been retired. The pension fund board decided to use about $300 million money generated from investment returns to give out the bonus checks. It's a one-time bonus that isn't guaranteed in future years. Read more

Texas Teachers Returns 12.7% in Fiscal 2024

The Teacher Retirement System of Texas reported during a recent board of trustees meeting that the pension fund’s investment portfolio returned 12.7% for the fiscal year ended August 31, well ahead of its long-term annualized return of 7%. According to a November release, the pension fund’s asset value was $209.5 billion as of the end of the fiscal year, up from $186.6 billion at the end of fiscal 2023. Read more